... FUQING China June 27 /Xinhua-- China Clea...Since halting biodiesel production in March 2008 the Company has been...With respect to the Company's suspended biodiesel operations theChin... We are hopeful with the possibility of restarting our biodieselprodu...

FUQING, China, June 27 /Xinhua-PRNewswire-FirstCall/ -- China Clean
Energy Inc. (OTC Bulletin Board: CCGY) ("China Clean Energy", the
"Company"), a leading producer of environmentally-friendly specialty
chemical products made from renewable resources in The People's Republic of
China, today announced that it continues to make progress in finding
alternative markets for its specialty chemical products and that it
continues to evaluate options that would allow it to resume biodiesel
production.

Since halting biodiesel production in March 2008, the Company has been
seeking alternative markets in China for its specialty chemical products,
including selling standard monomer acid, a biodiesel substrate, to
environmentally friendly paint producers. Monomer acid has a very similar
chemical composition to biodiesel and benefits from the fact that its
pricing is not regulated by the government, thus allowing the Company to
pass on any increases in raw material costs to its customers.

With respect to the Company's suspended biodiesel operations, the
Chinese government's recent decision to increase the selling price of
diesel by RMB 1,000 per metric ton to RMB 7,300 per metric ton (including
17% Value Added Tax) has not been sufficient to allow the Company to
restart biodiesel production due to the current prices of waste cooking oil
and waste vegetable oil, which have risen from RMB 3,600 per ton to around
RMB 5,000 per ton since March 2008. The Company, however, is currently
seeking to secure these raw materials from suppliers in Malaysia and
Indonesia, where prices have yet to increase as dramatically as they have
in China (currently RMB 4,300 per ton). These discussions, however, remain
preliminary, and no assurances can be given that the Company will be able
to secure any raw materials from these suppliers at prices that would allow
the resumption of biodiesel production.

"We are hopeful with the possibility of restarting our biodiesel
production in the near future by leveraging lower waste palm oil feedstock
supplies as we benefit from higher diesel prices in China. We expect
biodiesel to continue to represent an attractive long-term opportunity for
our business both at our current refinery and the new Jiangyin Plant if
margin structures return to profitable levels," said Mr. Tai-Ming Ou,
Chairman and CEO of China Clean Energy. "We remain hopeful that we will be
able to restore our biodiesel margins, and that we will be successful in
expanding our specialty chemicals business to deliver value to our
shareholders in the years ahead," concluded Mr. Ou.

China Clean Energy has also completed the installation and testing of
its high purity dimer-acid production facility at its current refinery and
started production in June 2008. The Company expects its new high purity
dimer-acid capacity to enhance future earnings and profitability.

This announcement contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. All statements other than statements of historical fact
in this announcement are forward-looking statements, including but not
limited to, the Company's ability to raise additional capital to finance
the Company's activities; the effectiveness, profitability, and the
marketability of its products; legal and regulatory risks associated with
the share exchange; the future trading of the common stock of the Company;
the ability of the Company to expand its production capacity; Company's
ability to secure raw material feedstock supplies; the period of time for
which its current liquidity will enable the Company to fund its operations;
the Company's ability to protect its proprietary information; general
economic and business conditions; the volatility of the Company's operating
results and financial condition; the Company's ability to attract or retain
qualified senior management personnel and research and development staff;
and other risks detailed in the Company's filings with the Securities and
Exchange Commission. These forward-looking statements involve known and
unknown risks and uncertainties and are based on current expectations,
assumptions, estimates and projections about the Company and the industry.
The Company undertakes no obligation to update forward- looking statements
to reflect subsequent occurring events or circumstances, or to changes in
its expectations, except as may be required by law. Although the Company
believes that the expectations expressed in these forward-looking
statements are reasonable, they cannot assure you that their expectations
will turn out to be correct, and investors are cautioned that actual
results may differ materially from the anticipated results.

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